The prime minister of India is on a visit to the country along with many other heads of states and delegates for the Regional Comprehensive Economic Partnership (RCEP) where the trade deal which has been in the pipeline for some time now has been put up for consideration of acceptance for the members country and having the deadline set for the 31 Dec 2019.
The deal is under re-considerations though due to a variety of reasons but first and foremost being the unfair nature of the deal towards the chemical and the agricultural industries in India. The point was reiterated by the Indian premier as he said that the deal could not have India as a member nation in the current form and for the 15 nation RCEP to get India on the discussion table hence shall be a bigger task as the unfairness of the deal has mainly arisen from the growing Chinese influence in the region along with global economic slowdown which has hampered China the most also because of the trade stand-off between China and the US, the manufacturing industries of China are taking a huge beating and thus the RCEP deal is especially important for them as they look for it from the point of view of using it against the counter veiling and anti-dumping duties that are insisted by the WTO to protect the local economies.
The Indian chemical industry is a major classification in the industry section when it comes to the RCEP nations with an annual turnover of about US $ 160 Billion, it is considered as an industry of the industries, and it is fast growing at about a 100 basis points which is faster than the growth in the economy.
Rules of Origin under the RCEP have a criterion which can potentially prove to be damaging for products with multiple stage production processes, and the chief concern for India in flooding of the Indian markets with cheap Chinese chemical import which will break the growing stance of the industry also the industry is pegged to potentially be the growth engine of the economy in the next decade and any handicap to it shall be disastrous to the already slowing Indian economy.
Tags : Chemical industries, prime minister of India, RCEP , Regional Comprehensive Economic Partnership ,